Federal grants for Texas small businesses in 2026 continue to come primarily through competitive research programs, workforce development funding, and specialized industry grants. This guide covers the federal grant programs most relevant to Texas small businesses and how to access them.
SBIR/STTR Research Grants
The largest federal grant program for small businesses. Eleven federal agencies award grants for innovative research and development:
- Department of Defense: The largest SBIR funder, with topics spanning defense technology, cybersecurity, and materials science. DoD SBIR guide.
- National Science Foundation: Technology research across computing, engineering, and physical sciences. NSF SBIR guide.
- NIH: Biomedical and health technology research. NIH SBIR guide.
- Department of Energy: Energy technology, clean energy, and advanced manufacturing. DOE SBIR guide.
USDA Grant Programs
- REAP (Rural Energy for America): Grants for renewable energy and energy efficiency projects in rural areas. Grants up to 40% of project costs.
- Value-Added Producer Grants: Grants for agricultural producers adding value to raw products. VAPG guide.
- EQIP: Conservation payments for agricultural businesses. EQIP guide.
Federal Tax Credits
While technically not grants, federal tax credits provide direct dollar-for-dollar reductions in tax liability:
- R&D Tax Credit: Credits for qualifying research activities. Startups can apply up to \$250,000/year against payroll taxes. R&D guide.
- WOTC: \$2,400 to \$9,600 per qualifying hire.
- Section 179: First-year equipment deductions.
- Energy Investment Tax Credit: Credits for qualifying renewable energy investments.
How to Find Federal Grants
- Grants.gov: The central portal for all federal grant opportunities. Search by keyword, agency, and eligible applicant type.
- SAM.gov: Register your business here before applying for federal grants. SAM registration guide.
- Agency SBIR pages: Each federal agency publishes SBIR/STTR solicitations on its own website.
- SBDC assistance: SBDCs can help identify relevant federal programs and assist with applications.
Find Federal Programs That May Fit
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